Author: NBM CORRESPONDENT

Kenya’s Parliament faces another high-stakes clash over devolved funds after the Senate approved a Sh405 billion allocation to counties, directly challenging the National Assembly’s earlier decision for the same amount in the upcoming 2023/26 financial year. While the figures appear identical, a critical dispute over what constitutes the equitable share of national revenue threatens vital services in the 47 counties. The core disagreement: The National Assembly, led by Speaker Moses Wetang’ula, insists its approved Sh405 billion represents 25.8% of the audited national revenue from 2020/21. Wetang’ula defended this allocation, citing Article 217 of the Constitution and the need for fiscal…

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Kenya’s contentious Finance Bill 2025 entered a critical phase on Tuesday as the National Assembly’s Finance and National Planning Committee launched nationwide public hearings. Following a week of stakeholder consultations in Nairobi, the committee is now taking its deliberations directly to citizens—starting with sessions in Busia and Migori counties today and moving to Trans Nzoia and Nandi on Wednesday. Plans include hearings in at least 10 counties overall. Committee Vice Chairman Benjamin Langat underscored the vital role of public input. “This is not an exercise in futility; it’s a very important exercise,” Langat stated. “This Finance Bill is a proposal,…

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Kenya’s Capital Markets Authority (CMA) is poised to dramatically reshape the leadership and oversight of the country’s largest listed companies and financial market intermediaries. The new Capital Markets (Corporate Governance) Regulations, 2025, finalized after recent stakeholder consultations, target significant weaknesses in corporate governance, aiming to boost market integrity and restore investor confidence. The regulations introduce sweeping changes designed to curb misconduct and enforce accountability: 1. Separation of Powers: A core rule mandates the complete separation of the chairman and the executive officer roles. No individual can hold both top positions, forcing a clear division between board oversight and executive management.…

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A major traffic gridlock was reported this morning along the Nairobi-Mombasa Highway near the Jet Inn area, between Emali and Masimba, along a stretch of the highway spanning a railway bridge. Reports indicate that the fatal accident, which occurred on Friday morning, resulted in one confirmed death and left another individual with serious injuries. Emergency response teams were dispatched to provide medical assistance and manage the situation. “Three trailers were involved in a collision early this morning on the railway bridge section of the highway, resulting in one confirmed fatality and serious injuries to one driver,” said Police Spokesperson Muchiri…

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In its latest national survey on a range of economic and political issues released on Wednesday, 28 May, TIFA reveals that 54 per cent of Kenyans do not support broad-based government. Despite entering a political deal with the Orange Democratic Movement leader Raila Odinga that was hailed as a democratic milestone expected to bear fruit through broad-based government, the survey paints a gloomy picture of the Kenya Kwanza administration. According to TIFA, it is quickly becoming apparent that Odinga will return to the opposition and run for president in 2027. The report shows that 54 per cent of Kenyans oppose…

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Proposed changes to Kenya’s Value Added Tax (VAT) system in the Finance Bill 2025 are drawing sharp criticism from economists and business leaders, who warn they risk crippling manufacturers and creating unfair advantages for large foreign investors. At the heart of the controversy is a plan to eliminate the input VAT offset mechanism for certain goods and services. Under the current system, businesses deduct VAT paid on raw materials or services (input VAT) from the VAT collected on sales (output VAT), remitting only the difference to the Kenya Revenue Authority (KRA). The Bill proposes removing this offsetting privilege, forcing affected…

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Diamond Trust Bank Kenya reported a robust 9.9 per cent increase in net profit for the first quarter ending March 2025, reaching Sh3.23 billion, up from Sh 2.94 billion in the same period last year. The growth was primarily fuelled by disciplined cost management and a strong cost-to-income ratio, even as non-interest revenues faced significant headwinds. Net interest income rose by 7.98 per cent to Sh 2.26 billion, driven by a 6 per cent expansion in the loan book, which grew to Sh 284.26 billion. On the other hand, non-interest income declined sharply by 18.5 per cent to Sh 3.02…

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The World Bank has cautioned that Kenya’s fiscal health is under increasing pressure due to a vulnerable economic outlook and a rising risk of debt distress. The warning stems from the World Bank Kenya Economic Update and Public Finance Review (PFR) 2025. “Kenya is at high risk of debt distress, and decisive reforms are urgently needed to keep debt sustainable while promoting growth and jobs,” said Qimiao Fan, World Bank Division Director for Kenya, Rwanda, Somalia, and Uganda, during the release of the report on Tuesday, 27 May, at the University of Nairobi. “A recent paper presenting evidence of some…

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In a bold move to safeguard market share, OPEC+ nations, led by Saudi Arabia and Russia, have agreed to ramp up oil production despite a sustained slump in global crude prices. The decision, finalised during a high-stakes meeting in Vienna this week, signals the cartel’s strategy to prioritize volume over price stability—a gamble that could reshape energy markets and ripple through Kenya’s fuel-dependent economy. The 25-member OPEC+ alliance, which controls over 40 per cent of global oil output, announced plans to increase daily production by 1.5 million barrels starting July 2024. This follows a similar hike in May 2024, pushing…

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